Learn more about Hong Kong's role as a key regional hub for NTT DATA's regional expansion, particularly in the context of the RCEP (Regional Comprehensive Economic Partnership), which is ushering in a new age of regional economic integration.
The Regional Comprehensive Economic Partnership (RCEP) has been in effect since 1 January 2022. The recent ratification of the agreement by the Philippines means it is now fully in force. This development, coupled with the notable economic growth in the region, is expected to lead to a boon for digital payment transactions. The e-Conomy SEA 2022 report by Google, Temasek, Bain & Company predicted that there would be strong growth in digital financial services, with both digital payments and digital remittance enjoying double digit annual growth in key ASEAN economies, including Indonesia, Malaysia, Thailand and Viet Nam, through 2025.
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HKTDC Research has talked to the NTT DATA to discover the market potential in the digital payments industry, while revealing game-changing trends under the RCEP.
HKTDC Research: Can you share with us some of the new trends in the digital payments business?
NTT DATA: There have been several new developments in the industry in recent years, and these new trends became more prominent after and as a result of the COVID-19 pandemic. Two consistent themes we see are:
Digital Transformation: The B2B sector has shifted towards digitalising their business processes and integrating payments into their daily operations. During the pandemic, we saw an unprecedented acceleration in the adoption of digital payments, and this shift sets to continue post-pandemic as more businesses are ready to push forward the use of digital/contactless payments. Some businesses have sped up their ongoing efforts; while others are playing catch-ups by initiating digital capabilities to stay afloat and meet the rising demand for better customer experience.
Payment method and channel consolidation: In the past few years, many new channels have emerged from the FinTech sector. The challenge now for merchants and buyers is to pivot swiftly towards the opportunities brought forth by these new avenues. Also, given the current proliferation of payment methods and channels in the market, one would need to develop the expertise to choose the best channels and payment methods from the available.
HKTDC Research: How do new developments in regional economic integration – in particular, the implementation of the RCEP – affect the industry development and NTT DATA’s strategic planning?
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